In a groundbreaking announcement on May 8, KRAFTON Inc., led by CEO CH Kim, set the gaming industry abuzz with its impressive Q1 2024 preliminary earnings report. Demonstrating remarkable financial growth and strategic advancements, KRAFTON’s latest figures underline its burgeoning influence and ambitious plans for the global gaming landscape.
KRAFTON: Surge in Earnings Sets New Records
According to the Korean International Financial Reporting Standards (K-IFRS), KRAFTON achieved unprecedented success in the first quarter of 2024, with sales reaching KRW 665.9 billion. The company’s operating profit (OP) saw a staggering increase of 89.0% quarter-over-quarter, hitting KRW 310.5 billion, while net profit (NP) rose to KRW 348.6 billion. These figures point to a robust 24.6% quarterly growth in consolidated sales, marking a historic peak in the company’s financial performance.
| Earnings(1Q24) | Earnings(4Q23) | % change (QoQ) | Earnings(1Q23) | % change (YoY) | |||||||
| Sales | 6,659 | 5,346 | 24.6 | 5,387 | 23.6 | ||||||
| Operating profit | 3,105 | 1,643 | 89.0% | 2,830 | 9.7 | ||||||
| Net profit | 3,486 | (132) | – | 2,672 | 30.5 |
▲Table: KRAFTON’s 1Q24 (preliminary) earnings on a consolidated basis (Unit: KRW 100M)
BATTLEGROUNDS MOBILE INDIA Leads with Innovation
A key driver of this success has been BATTLEGROUNDS MOBILE INDIA (BGMI), which has captivated users with content that celebrates local Indian festivals and unique co-marketing ventures with Bollywood. The launch of a UniPin web store for third-party payment platforms is another strategic move aimed at boosting profitability. With a focus on delivering stable services and diversifying its publishing experiences, KRAFTON is on a mission to dominate the Indian gaming market.
Strong Performance Across Business Divisions
The company’s earnings report also highlights significant growth across its business divisions:
- PC/Console brought in KRW 255.2 billion
- Mobile soared to KRW 402.3 billion
- ‘Others’ contributed KRW 8.4 billion
This growth was fueled by the innovative use of PUBG: BATTLEGROUNDS IP, leading to a surge in sales, traffic, and user engagement. KRAFTON aims to maintain this momentum by securing steady traffic, enhancing monetization strategies, and investing in the development of the IP franchise.
PUBG: BATTLEGROUNDS Achieves New Milestones
PUBG: BATTLEGROUNDS witnessed record highs in monthly active users (MAU) and sales following its transition to a Free-to-Play (F2P) model in 2022. The introduction of the Rondo map update and new weapon skins played a significant part in this success. The mobile division also reported increased traffic, celebrating its 6th anniversary with special theme modes and HomeGround content.
Investing in the Future of Gaming
KRAFTON is not resting on its laurels. Aligned with its “Scale-up the Creative” strategy, the company is aggressively pursuing equity investments in developers and acquiring promising global IPs through second-party publishing. After making 10 investments last year, KRAFTON has already completed 9 in the first half of 2024, showcasing its commitment to nurturing future growth engines.
A Glimpse Into the Future with ‘Dark and Darker Mobile’
Adding to its exciting lineup, KRAFTON conducted a successful beta test of ‘Dark and Darker Mobile’ in Korea, attracting over 50,000 participants. This initiative is part of KRAFTON’s strategy to refine game quality through user feedback and prepare for a global launch with a phased marketing campaign set for the latter half of 2024.
KRAFTON Inc.’s Q1 2024 earnings report not only highlights its financial strength but also its strategic foresight and commitment to innovation in the gaming industry. With plans to expand its portfolio and engage gamers worldwide, KRAFTON is poised to redefine entertainment and connectivity in the digital age.
